How to survive today's environmental street lamp manufacturers

In the past two years, street lamp manufacturers large and small have been producing LEDs. The enthusiasm of LED has happened in the last year or two. After a short period of vigorous development, it immediately turned around and fell into the deep valley. LED is regarded as a new gadget to rescue the ancient town from the low profit of traditional lighting, and the direction of the industrial transformation of the ancient town in the future. But now, most LED companies are facing losses, vicious competition, market disorder, and the entire industry is facing a major reshuffle. In addition to the tens of thousands of companies registered in the ancient town and related to lighting, there are also many 'three-nos' factories that participated in creating this output value. They constitute a complete industrial chain of production, accessories, packaging, logistics, etc. 60% share. Now almost every household is doing LED. LED is considered to be more promising due to its small size, light weight, good directionality, resistance to various harsh conditions, low energy consumption and longer life. Of course, the profit is also higher. 'The profit of energy-saving lamps is about 5%-8%. If you replace the LED with the same wattage, the profit will be 20%-30%.' An industry insider in Guzhen said. A lot of money goes into LED. Since the beginning of this year, LED investment continues to heat up. According to the data released by the National Semiconductor Lighting Engineering Research and Development and Industry Alliance (CSA), in the first seven months of this year, China’s LED industry plans to invest a total of 125.6 billion yuan. But the threshold of LED is not high. In Guzhen, a small factory invested tens of thousands of yuan to produce lamp beads after buying some materials. Small factories sell these lamp beads to larger assembly factories nearby. Not long after the good days, these small and medium LED companies fell into a loss. According to statistics, 90% of LED companies currently have losses. The little bosses have been riding a roller coaster in the past year. At the end of last year, they were full of confidence. After March this year, the market plummeted. After the price of rare earths skyrocketed, the phosphors related to it were sold almost daily. Phosphors are essential materials for energy-saving lamps and LEDs. A statistician of Hengyuan Lighting was surprised to see that the price of phosphor has risen from 300 yuan per kilogram in March to nearly 3,000 yuan in August. In less than half a year, it has risen nearly 10 times. The current price has fallen, but it is still at a high level of around 1,700 yuan per kilogram. In the past year, the prices of various raw materials closely related to the lighting industry have continued to rise, and the prices of metal materials such as copper, iron, and aluminum have all increased amid fluctuations. The electronic components necessary for energy-saving lamps have also increased by about 10% this year.